The World Bank has clarified that the $10.5 million funding intended for the Central Bank of Nigeria (CBN) is a grant, not a loan.
An anonymous source at the World Bank confirmed to our correspondent on Friday that the funding comes from the Finance for Development Multi-Donor Trust Fund, a joint initiative between the World Bank and the CBN.
Earlier reports had suggested that Nigeria had applied for a $10.5 million loan from the World Bank to support the CBN’s technical capacity and upgrade the country’s domestic payment infrastructure. This was based on a description on the World Bank’s website, which referred to the CBN as a borrower for the project.
However, further verification by Sunday PUNCH has confirmed that the funding is, in fact, a grant. It does not fall under the World Bank’s typical financing channels, such as the International Development Association (IDA) or the International Bank for Reconstruction and Development (IBRD), which are commonly used for loans to Nigeria.
The grant is aimed at strengthening the CBN’s ability to supervise the financial sector using advanced technology and improving domestic payment systems, particularly for remittances.
The CBN Technical Assistance Facility, as outlined on the World Bank’s website, seeks to incorporate innovative technologies into the CBN’s supervisory processes. This initiative is designed to address both ongoing and emerging challenges in Nigeria’s evolving financial landscape while improving the security and efficiency of the country’s payment systems.
Currently in the concept review stage, the project is expected to enhance the CBN’s institutional capacity, apply advanced technological solutions to supervision, and modernize Nigeria’s domestic payment infrastructure.
The project is scheduled for board presentation approval on June 12, 2025. The CBN will lead the implementation, in collaboration with the World Bank, to ensure the successful execution of the project.
